Encryption Won't Shield Dotcom's New Site From IP Suits

Law360, New York (January 23, 2013, 8:19 PM EST) -- While indicted Megaupload founder Kim Dotcom claims his newly launched cloud storage service Mega does not run afoul of copyright law because the files are encrypted, attorneys say encryption will provide little legal cover should the film industry mount an infringement case over the site.

Mega launched Sunday, and Dotcom said on Twitter that over half a million people had signed up on the first day. He has said in interviews that he believes there are no legal measures that could be used to shut down...